CONQUEST OF THE U. S. BY SPAIN 287 agree, are not fit to come in as states, there will be con* stant political agitation to admit them as states, for such agitation will be fomented by any party which thinks that it can win votes in that way. It was an enormous blunder in statecraft to engage in a war which was sure to bring us into this predicament. II. It seems as if this new policy was destined to thrust a sword into every joint in our historical and philosophical system. Our ancestors revolted against the colonial and navigation system, but as soon as they got their independence, they fastened a navigation system on themselves. The consequence is that our industry and commerce are to-day organized under a restrictive system which is the direct offspring of the old Spanish restrictive system, and is based on the same ideas of economic policy; viz., that statesmen can devise a pros- perity policy for a country which will do more for it than a spontaneous development of the energy of the people and the resources of the territory would do. On the other hand, inside of the Union we have established the grandest experiment in absolute free trade that has ever existed. The combination of the two is not new, because it is just what Colbert tried in France, but it is original here and is an interesting result of the presence in men's minds of two opposite philosophies, the adjust- ment of which has never yet been fought out. The extension of our authority over these new territories forces the inconsistency between our internal and our external policy out of the field of philosophy into that of practical politics. Wherever the boundary line of the national system falls we have one rule inside of it and another outside of it. Are the new territories to be taken inside or to be treated as outside? If we develop this dilemma, we shall see that it is of the first importance.